NEW YORK—New state legislation would protect consumers from scams, predatory loans, and other abusive business practices, according to New York Attorney General Letitia James.
At an announcement with Assemblyman Micah Lasher and the support of state Sen. Leroy Comrie on March 13, James said the FAIR Business Practices Act would help the state protect New Yorkers from harmful business practices in the absence of protection from the federal government.
James said the state legislation would address actions such as predatory lenders selling overpriced and high interest loans to small businesses, student loan servicers that steer borrowers into expensive payment plans, nursing homes that unfairly sue deceased family members, and companies that make it hard for consumers to cancel a subscription.
The Attorney General described the state’s current consumer protection laws as inadequate and antiquated and said she is concerned that New Yorkers have relied on the federal government for too long for that protection.
“We cannot rely on federal consumer protection laws,” James said. “In fact, we cannot rely upon the federal government. Recent weeks, the federal government has taken steps to destroy regulatory offices, and most recently, as all of you know, the Consumer Financial Protection Board (CFPB) they attempted to dismantle.”
President Donald Trump fired the CFPB’s previous director, Rohit Chopra, on Feb. 1. A temporary replacement director ordered the immediate suspension of all agency operations, cancelled $100 million in contracts, and fired 70 employees.
Lasher said at the announcement, “It will come as a surprise to many that deep-blue New York has one of the weakest consumer protection laws in the country.”
New York’s consumer protection law, passed in 1970, prevents businesses from committing deceptive business acts and practices. However, the law could leave consumers vulnerable to unfair or abusive acts by companies, according to the attorney general’s office.
The Epoch Times asked James whether there had been a rise in complaints or reports of unfair or abusive business practices since the new administration came into office.
“I believe that there’s been an increase with regard to a lot of these fraudulent, deceptive, and unfair practices all throughout my time as attorney general,” James said. “It’s really up to states, obviously, to step forward in [the federal government’s] absence and fill that gap. And so I and others will be doing that. ... We need to strengthen our statute here in the state of New York.”
